Kore Us Reit · SGX:CMOU
Kore Us Reit — Keppel Pacific Oak US REIT — H1 2021 Earnings Presentation
28 slides from Kore Us Reit's earnings presentation, Jul 26, 2021
Slide 1: First Half 2021 Financial Results
First Half 2021 Financial Results 26 July 2021 Keppel
Slide 2: Important Notice
Important Notice The past performance of Keppel Pacific Oak US REIT is not necessarily indicative of its future performance. Certain statements made in this release may not be based on historical information or facts and may be “forward-looking” statements due to a number of risks, uncertainties and
Slide 3: Key Highlights
Key Highlights Tenant lounge The Westpark Portfolio Redmond, Seattle, Washington,
Slide 4: 1H 2021 Key Highlights
1H 2021 Key Highlights Continued Growth in Operating Income a Stable Income Stream Robust Financial Position Distributable Income US$29.9 mil 42.8% YoY DI of US$29.9 million for 1H 2021 was 2.8% higher y-o-y, supported by positive rental reversions and built-in rental escalations, as well as lower e
Slide 5: Financial Performance & Capital Management
Financial Performance & Capital | Management « Bellevue Technology Center Bellevue, Seattle, Washington
Slide 6: Financial Performance for 1H 2021
Financial Performance for 1H 2021 Distributi Unit (US ) 2Q2021 202020 % 1H2021| 1H2020 3.10 (US$’000) |(US$’000) Change (US$’000) (US$’000) 3.16 Gross Revenue 33,798 35,174 (3.9) 68,383 70,500 (3.0) Net Property Income 20,225 20,921 (33) 40,587 41,872 (31) Adjusted NPI 12020 1H 2021 (excludes non-ca
Slide 7: Strong Balance Sheet that Supports Growth Ambitions
Strong Balance Sheet that Supports Growth Ambitions KG sta) Pacific Oak US REIT (2) Excludes income available for distribution. As at 30 June 2021 (US$’000) Total Assets 1,361,752 Investment Properties 1,312,564 Cash and Cash Equivalents 44,970 Other Assets 4,218 Total Liabilities 585,890 Gross Borr
Slide 8: Robust Financial Position and Healthy Aggregate Leverage
Robust Financial Position and Healthy Aggregate Leverage Healthy aggregate leverage and 100% unsecured I As at 30 June 2021 Debt Maturity Profile Total Debt USS505.7m of external loans * 100% unsecured . 100% of Loans Unsecured 28.6% 24.7% 22.8% Available Facilities + US$50.0m of revolving credit fa
Slide 9: Portfolio Performance
Portfolio Performance Tenant space at The Westpark Portfolio Redmond, Seattle, Washington, &e
Slide 10: Key Growth Markets Driven By Tech And Innovation
Key Growth Markets Driven By Tech And Innovation 90.5% Portfolio Committed Occupancy KORE’s strategic exposure to tech hubs and tech-tenancy provides income resilience as businesses accelerate their digital transformation strategies. [CQ Pacific Oak US REIT SEATTLE - BELLEVUE/REDMOND, Washington Bel
Slide 11: NLA and CRI by Tenant Industry
31.5% 31.7% NLA 18.1% 17.6% 15.8% 15.1% 14.2%13.6% 12.4% 14.3% CRI 8.0% 7.7%
Slide 12: Tech Focused Tenant Composition and Industry Exposure
Tech Focused Tenant Composition and Industry Exposure KORE’s buildings and business campuses in the tech hubs of Seattle - Bellevue/Redmond, Austin and Denver contribute ~61% of NPI") Geographic Diversification by NPI contribution as at 30 June 2021 Austin 5.5% Seattle - Bellevue/Redmond Denver 44.3
Slide 13: Low Tenant Concentration Risk
Low Tenant Concentration Risk Top 10 tenants contribute only 20.5% of CRI Majority of top 10 tenants are established tech companies located in the fast-growing tech hubs of Seattle - Bellevue/Redmond and Denver. As at 30 June 2021 Top 10 Tenants Sector Asset Location % of CRI Ball Aerospace Technolo
Slide 14: Last Months Rent Growth
Last 12 Months Rent Growth Key Growth Markets Average -1 5% United States Average Gateway Cities Average US Average Seattle, Bellevue CBD 2.2% Seattle, Eastside Bellevue Seattle, Redmond Denver, Northwest Austin, Northwest Houston, Galleria/Uptown Houston, Galleria/Bellaire Dallas, Las Colinas Orlan
Slide 15: Projected 12-Month Rent Outlook
Projected 12-Month Rent Outlook average in-place rents are ~8% below asking rents, wh nue to drive organic Key Growth Markets Average - 2.4% United States Average Gateway Cities Average US Average Seattle, Bellevue CBD Seattle, Eastside Bellevue Seattle, Redmond Denver, Northwest Austin, Northwest H
Slide 16: First Choice Submarkets Outlook
First Choice Submarkets Outlook Submarket Property Submarket Last 12M Last1 2M Under Last 12M Projected Property Vacancy Rate Vacancy Rate Deliveries ‘Absorption Construction Rental Growth Rental Coowth (%) (%) (sf000) (sf'000) (sf'000) (%) (%) The Pisce, Butings * 8.9 8.2 - (465.0) 4,155 2.2 (4.2)
Slide 17: Market Outlook
Market Outlook Tenant lounge, 1800 West Loop South Houston, Texas
Slide 18: US Economy: Recovery Apace
US Economy: Recovery Apace Continued resumption of economic activity in 2021 ¢ US Real GDP increased 6.4% q-o-q in 1Q 2021 reflecting the continued economic recovery, reopening of establishments, and continued government response related to the COVID-19 pandemic". * Unemployment rate was 5.9% in Jun
Slide 19: CEOs and Employees want to Return to Offices
CEOs and Employees want to Return to Offices Progress in vaccinations and the removal of COVID-19 restrictions are raising confidence and optimism (as at 7 July 2021)2) (% of total Population)() Houston Austin At Least One Dose Dallas 9 Philadelphia 3% Los Angeles 27.2% Fully Vaccinated Chicago . Wa
Slide 20: Tech Continues to Lead in Office Leasing
Tech Continues to Lead in Office Leasing KORE?’s f historically fast-expanding tech sector will benefit the REIT 100 Largest U.S. Office Leases by Tech Firms in 2020" Markets with Most Square Footage Leased * The tech sector leased ~26m sf of office space in 2020, accounting for 17% of total office
Slide 21: Strategic Presence in some of the Fastest Growing States
Strategic Presence in some of the Fastest Growing States % Change in Resident Population Top 20 Fastest Growing States in the US from 2010-2020”) 1 Utah 18.4 2 Idaho 17.3 63 Texas® 15 4 North Dakota 15.8 5 Nevada 15.0 © 6 Colorado 148 7 District of Columbia 14.6 10 Arizona 11.9 11 South Carolina 10.
Slide 22: Presence in Magnet Cities
. Majority of KORE’s key growth markets are located in Super Sun Belt and 18-Hour cities” Presence in Magnet Cities Poised to capture growth from population migration and suburbanisation trends G SEATTLE - BELLEVUE/REDMOND, WASHINGTON -The Plaza Buildings Popular in-migration destinations + Bellevue
Slide 23: Strategic presence in some of the fastest growing states in the US
Strategic presence in some of the fastest growing states in the US. First choice e Exposure to the fast-growing tech sector provides income resilience and growth. US office SREIT focused on the fast-growing tech sector across key growth markets Resilient operating metrics with built-in average renta
Slide 24: Thank You
Thank You For more information, please visit www.koreusreit.com Westech 360 Austin, Texas
Slide 25: Additional Information
Additional . Information Tenant space, Westmoor Center Denver, Colorado
Slide 26: Trust Structure
Trust Structure v Tax-efficient structure for holding US properties * No US corporate tax (21%) and US withholding tax (30%) * No Singapore corporate tax (17%) and Singapore withholding tax (10%) * Subject to limited tax v Leverage Sponsors' expertise and resources to optimise returns for Unitholder
Slide 27: Strong Sponsors: Keppel Capital and KORE Pacific Advisors
Strong Sponsors: Keppel Capital and KORE Pacific Advisors Fy] Capital AR vce oni * Asset management arm of Keppel Corporation * Established commercial real estate investment and a premier manager in Asia manager in the US * US$28 billion” * US$4.0 billion Global assets under management as at end-202
Slide 28: Thank You / Our Sustainability Commitment
Thank Y u OUR SUSTAINABILITY COMMITMENT We place sustainability at the heart of our strategy and are committed to For more information, delivering sustainable distributions and strong total returns for Unitholders. please visit www.koreusreit.com Connect with us on: in| RESPONSIBLE BUSINESS The long
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